According to BDL statistics, the combined balance sheet of commercial banks operating in Lebanon widened by 4.09% (LBP 15,390 billion) during the first eleven months of the year 2019 to LBP 391,487 billion ($259.69 billion), up from LBP 376,097 billion ($249.48 billion) in December 2018. On an annual basis, the combined assets of the resident banking sector came in 5.35% higher than the LBP 371,614 billion ($246.51 billion) reading reported at end of November of last year.

On the funding side of the balance sheet, customer deposits fell by 6.27% (LBP 16,867 billion) YTD November 2019 to LBP 252,307 billion ($167.37 billion), and by 3.38% ($5.85 billion) on a monthly basis on the back of the bank run witnessed in the aftermath of the protests and resignation of the Lebanese government. The YTD contraction came as a result of the 5.22% (LBP 10,749 billion) drop in the deposits of the resident private sector to LBP 195,110 billion ($129.43 billion), accompanied by a 12.07% (LBP 6,866 billion) decrease in the deposits of the non-resident private sector to LBP 50,004 billion ($33.17 billion). On the other hand, public sector deposits increased by 11.61% (LBP 748 billion) to LBP 7,193 billion ($4.77 billion). From a currency denomination standpoint, deposits in Lebanese Pounds receded by 17.22% (LBP 14,402 billion) during the first eleven months of the year 2019 to LBP 69,239 billion ($45.93 billion), with foreign currency deposits also dropping by 1.33% (LBP 2,465 billion) to LBP 183,067 billion ($121.44 billion). In this context, the deposit dollarization rate increased to 74.69% by end of November in comparison with 70.62% at end of 2018 and 69.89% in November of the year 2018. On an annual basis, customer deposits narrowed by 5.70% from LBP 267,553 billion ($177.48 billion) in November 2018.

On the lending front, loans to the private sector (residents and non-residents) plunged by 11.62% (LBP 10,406 billion) during the first eleven months of 2019 to LBP 79,118 billion ($52.48 billion), down from LBP 89,524 billion ($59.39 billion) in December 2018. The loans portfolio also sank by 11.36% on an annual basis, resulting in a ratio of net loans to customer deposits of 31.36%, compared to 33.26% at end of 2018 and 33.36% in November 2018. More specifically, the ratio of LBP-denominated private sector loans to LBP deposits stood at 34.69% by end of November 2019, in comparison with 32.95% at year-end 2018 and 33.06% in November 2018. Similarly, the ratio of foreign currency-denominated private sector loans to foreign currency deposits fell to 30.10%, from 33.40% in December 2018 and 33.50% at end of November 2018.

The consolidated capital accounts of commercial banks operating in Lebanon rose to around LBP 31,006 billion ($20.57 billion) at end of November 2019, compared to LBP 30,382 billion ($20.15 billion) at end of 2018 and LBP 30,445 billion ($20.20 billion) at end of November 2018. This can be explained by banks’ continuous reinforcement of their capital base in order to meet BDL’s solvency requirement thresholds.